'Ad revenue sharing by X subject to GST over threshold'

Remuneration individuals received by from X (formerly Twitter), as part Rind of its advertisement revenue sharing plan, will be treated as supply under the GST law and will be subject to 18 per cent tax, experts said.

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The tax will kick in if the total income from various services, including rental income, interest on bank fixed deposit, and other professional services, rendered by an individual exceeds Rs 20 lakh in a year.

In recent times, X (formerly Twitter) has started advertisement revenue sharing for its X Premium subscribers or verified organisations. The account needs to have 15 million organic impressions on the posts in the last three months and have at least 500 followers to be able to be part of this revenue sharing programme.

Content creators on X are able to set up Ad Revenue Sharing and Creator Subscriptions independently. Many social media users have in the recent past posted tweets about receiving revenue share from X.

Experts said it is not only the revenue share earnings from Twitter posts, but income from other sources, like interest, rental income, which will contribute to the calculation of the threshold for GST registration. So, for calculating the Rs 20-lakh threshold, the revenues which are otherwise exempt from GST would be included. However, GST would not be leviable on such exempt income.